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What is COID

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What is COID

What is COID?

Information extracted from the internet, not original of this website:

Through the prescriptions of the Compensation for Occupational Injuries and Diseases Act (Act 130 of 1993), a process was implemented by government which provides for the payment of compensation.

The aim of the COID Act is to provide for compensation in the case of disablement caused by occupational injuries and diseases, sustained or contracted by employees in the course of their employment, or death resulting from such injuries and diseases; and to provide for matters connected therewith.

The COIDA was amended in 1997, Act No 61 of 1997. Unlike the old Workmen's Compensation Act, COIDA covers most employees, not only those who earn less than a certain amount.

Based on Legislation in section 1, of the COID Act

Workers who are injured on duty or obtain an occupational disease can claim compensation for temporary or permanent disablement. If workers die as a result of an injury on duty, their dependants will also be entitled to claim compensation. Employers that registered their employees are protected against civil claims in this regard. The COIDA basically prevents employees covered by the act from suing their employers for damages in terms of common law.

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Based on Legislation in section 80, of the COID Act

Before we continue it is important to first have a look at the meaning of the word ''employer''. Employer according to definition means any person, including the State, who employs an employee, and includes:

any person controlling the business of an employer;
if the services of an employee are lent or let or temporarily made available to some other person by his employer, such employer for such period as the employee works for that other person;
a labour broker who against payment provides a person to a client for the rendering of a service or the performance of work , and for which service or work such person is paid by the labour broker.
Please note that the following employers are exempted and do not have to pay assessment fees:

National and provincial state departments;
Certain local authorities
Employers insured by a company other than the Compensation Fund like Mutual Associations.

There are currently two approved mutual associations:

Federated Employers Mutual Assurance (FEMA), for the building industry; and
Rand Mutual Assurance Company (RMA), for the mining industry.

Based on Legislation in section 1 (chapter I), of the COID Act

An employer must register with the Commissioner within seven days after the day on which he employs his first employee. An employer must register with the Commissioner by submitting Form W As 2 with the particulars required therein to the Commissioner. These forms are available on the website of Department of Labour. Employers must make sure that they fill in all the questions on the form. During registration copies of the following documentation should be included:

the registration certificate from the Register of Companies if they are a company or closed corporation;
or their ID document, if they are sole owners of the business.


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